New research released today from the International Institute for Analytics (IIA) explores the relationship between data-driven decision making, analytics maturity and success in the financial services industry. Sponsored by customer experience management solutions company NGDATA, this research found that, while financial institutions are aware of the need to be more data-driven, they are lagging far behind digital native companies in their effective use of data.
For the study, IIA conducted a quantitative analysis on 17 key competencies that differentiate high and low performing analytics. While financial services was the second highest-scoring industry, earning high marks for understanding the importance of analytics and making efforts to be more data-driven, financial institutions nevertheless lagged far behind digital native companies. Even high-scoring financial firms, the report cites, “are highly data-oriented, have analytical tools, and make wide use of analytics. However, there remains a lack of commitment to fully compete on analytics or use it strategically.”
The IIA study examined 28 market-leading financial services companies, examining the analytical maturity of US banks, Canadian banks, wealth management firms, credit unions, credit card processing companies and insurance companies. Participating organizations included American Express, Bank of America, Goldman Sachs, JPMorgan Chase, MetLife, Visa, and Wells Fargo, among others.
